City Council approves Auburn redevelopment plan

ROCKFORD - City Council members approved plans Tuesday for a special taxing district meant to incentivize new business and development along Auburn Street in west Rockford.

A narrow 1½-mile stretch along Auburn Street between Rockton and Day avenues will be the city's 33rd tax increment finance district, the majority of which have been created in the last decade. The council's OK on Tuesday gave the city's legal department authority to draft an ordinance that will formally create the TIF. The city is expected to approve that ordinance Monday.

City officials hope the TIF will help spur development along the corridor, which has, at minimum, 20 vacant or partially vacant structures, according to a city report. The area includes two former industrial sites - the old Amerock building at the corner of Auburn and Central Avenue and a former Kitzman's lumber yard on Kilburn Avenue.

Several west-end business owners supported the redevelopment plan and creation of the TIF at a public hearing last month.

"They're ready, willing and want to move forward with investment on their properties and are looking for some assistance from the community to help make that happen," said Todd Cagnoni, the city's director of community and economic development.

The estimated budget for the new TIF is $40 million to be spent over 23 years, the majority of which would go toward site improvements, rehabilitation of aging buildings and public infrastructure. But that total largely depends on how much money the district can generate.

TIF districts freeze property-tax revenues at their current level for all taxing bodies except the city. When the value of the land increases as development occurs, the city collects the additional property tax, called increment, and spends the money on redevelopment and infrastructure projects.